supplier credit after taking direct debit twice

Yes, Thomas, there is a simpler way to handle the banking side, but it depends on how the transactions appear in your bank feed. Let me explain in detail.

If the transactions haven't been matched yet, you can follow these steps:

1. Sign in to your QuickBooks Online (QBO) account.
2. Go to the Accounting menu in the left panel and select Bank transactions.
3. Choose the bank where the transactions occurred.
4. From there, you can see these three transactions listed on your bank feed:
   - Money Out (Debit) :Original Direct Debit (Matches the Invoice)
   - Money Out (Debit) :Duplicate Direct Debit (The overpayment)
   - Money In (Credit) :The Refund (for the duplicate amount)
5. Locate the initial money out transaction (Original Direct Debit) that represents the legitimate payment. Click on it. QuickBooks should suggest or allow you to use the Find Match feature.
6. Match this transaction to the open invoice for your car insurance. This clears the invoice correctly.
7. Locate the second money out transaction (Duplicate Direct Debit) and check the box next to it. Then, find the corresponding money in the transaction (The Refund) and check the box next to it.
8. With both transactions selected, select Exclude.

If the first direct debit has already been matched to the invoice or if you're unable to exclude the duplicate payment and the refund, you can follow a slightly more formal process using a Supplier Credit, since this involves payments to a supplier rather than a customer. Here's how:

Record the Duplicate Payment as an Expense

1. Click the + Create button, then select Expense (or Cheque).
2. From there, fill out these necessary fields:
   - Payee: Choose your car insurance supplier.
   - Payment Account: Locate the bank account the money came from.
   - Payment Date: Use the date the money left the account.
   - Amount: Enter the duplicate payment amount.
   - Category: Choose Creditors (also known as Accounts Payable).
3. Once done, click Save and close.

This action will create a credit balance on the supplier’s account.

Categorise the Refund

1. Go back to your Bank transactions screen for the refund amount.
2. Find the Credit transaction (the money back).
3. Click it and select Categorise.

• Category: Select Creditors (or Accounts Payable) again.
• Payee: Select your car insurance supplier.
• Add (or Confirm).

This creates an equal and opposite transaction in the Creditors account, essentially cancelling out the supplier credit.

If you have any additional questions about QBO or need further assistance, don’t hesitate to ask. I’m always here to help!

Thank you very much for your help - i have managed to exclude the 2 so thats great. i will keep the info for future use so many thanks again

Thomas 

On behalf of my colleague, you're most welcome, Thomas. Thank you for getting back on this thread.

I'm glad that the steps provided by my colleague EmanE17 have helped you resolve your concerns. We appreciate your effort in letting us know about this. 

Please let me know if you have any QuickBooks-related queries, and we'll get back to you as soon as possible. Have a great day ahead!  

actually i have one more question and i wonder if i could use the second method above to solve it

i booked a course a while ago and paid for it - its all been matched and reconciled

now several months later they have cancelled the course and refunded my money back into my account.

would the second method outlines above be the correct one for this?

many thanks

thomas 

Welcome back, Thomas. Since you received a refund, I'd be happy to walk you through the right approach for this scenario, as the methods shared above are for the supplier credit.

Given that they returned the funds to your account, ensure you have already created the initial  expense or cheque and assigned a Category or Account to it. After that, follow the steps below:

1. Go to the + New icon.
2. Select the Bank deposit under the Other column.
3. On the Add funds to this deposit section, enter the Amount and choose the same Expense account that you used for the original Expense or Cheque.
4. If you deposited customer payments for invoices into the bank account along with the vendor refund, add them in the Select the payments included in this deposit section.

To learn the different approaches available in the program, refer to this article: Handle supplier refunds and credits in QuickBooks Online.

Feel free to get back to us if you have additional questions about vendor . I'm always around here in the Community forum to help you.

many thanks for your reply - when i double checked the transaction i had actually paid this with my credit card and the refund went back into my credit card. 

when i attempt the above the credit card does not show up under accounts that i can select and having read through the link you sent (thank you) it seems to only apply to debit cards

do you have a method for credit card refunds - ni looked at the credit card credit function but i think that is the wrong way round and a search on the help pages didn't show anything obvious on my initial search.

any help appreciated

Thomas 

Hello there, Thomas.

Yes, we do have a method in place to process refunds for credit card transactions. 

Here's how:

1. Go to + Create.
2. Select Credit card credit.
3. In the Payee field, choose the supplier who issued the refund.
4. From the Bank/Credit Account dropdown, select the credit card that received the refund.
5. Enter the Payment date, Amount, VAT, and Category. 
Note: Use the same category as the expense account from the original bill.
6. Once done, click Save and close. 

I'll include this article for detailed guidance on managing supplier refunds and credits: How to handle supplier refunds and credits in QuickBooks.

For further questions or concerns, you can leave a comment below. We're here to help.